Bond Market Update

Data Recon

• Total industrial production increased 0.8% month-over-month in August (Briefing.com consensus 0.1%) following a downwardly revised 0.9% decline (from -0.6%) in July. The capacity utilization rate increased to 78.0% (Briefing.com consensus 77.9%) from a downwardly revised 77.4% (from 77.8%) in July. Total industrial production was flat yr/yr while the capacity utilization rate was 1.7 percentage points below its long-run average.
  • The key takeaway from the report is that industrial production snapped back in August, led by manufacturing output and a near 10% increase in the index of motor vehicles and parts, after being depressed by Hurricane Beryl in July.
• Yield Check:
  • 2-yr: +3 bps to 3.59%
  • 3-yr: +3 bps to 3.45%
  • 5-yr: +2 bps to 3.43%
  • 10-yr: UNCH at 3.62%
  • 30-yr: -2 bps to 3.92%